IOI Corp Net Profit Slips To RM1.109 Bln In FY2024

KUALA LUMPUR, Aug 26 (Bernama) -- IOI Corporation Bhd (IOI Corp) recorded a lower net profit of RM1.109 billion for the financial year ended June 30, 2024 (FY2024) from RM1.114 billion in FY2023.

In a Bursa Malaysia filing today, it said revenue also declined to RM9.603 billion against RM11.583 billion previously.

IOI Corp said the underlying profit before tax (PBT) of RM1.380 billion for FY2024 was 23 per cent lower than the underlying PBT of RM1.782 billion for FY2023, due mainly to lower contribution from resource-based manufacturing segment, mitigated by higher contribution from the plantation segment.

Its fourth quarter (4Q FY2024) net profit for the quarter ended June 30 2024 was RM346.90 million versus RM37.20 million in the same quarter a year ago while revenue was RM2.539 billion versus RM1.950 billion. 

On prospects, the company is positive about its plantation segment’s financial and operating performance in FY2025, due to the higher projected fresh fruit bunch (FFB) production in FY2025 versus FY2024, despite the accelerated replanting programme in Sabah.

The growth is expected to be driven by the continuing labour productivity improvement in Peninsular Malaysia and better FFB production from young trees. Consequently, crude palm oil (CPO) production cost is also anticipated to be lower than in FY2024, it noted. 

On the ringgit, the company expects it to be much stronger versus the US dollar in FY2025 compared to FY2024 due to strong first-half 2024 growth in the Malaysian economy and the anticipated decline in US interest rates towards the end of the year.

“Overall, we expect the group’s operating and financial performance for FY2025 to be resilient and satisfactory,” it said. 

Meanwhile, IOI Corp declared a second interim single-tier dividend of 5.0 sen per ordinary share, payable on Sept 26, 2024.

-- BERNAMA